GS(SH:601500) Guolian Securities·2024-04-27 09:00Investment Rating - The investment rating for the company is "Buy (Maintain)" with a target price of 7.50 CNY [12][15]. Core Insights - The company reported a significant increase in net profit for 2023, primarily driven by recovering domestic and international demand, as well as a decrease in raw material prices and shipping costs [10][26]. - The company's overseas production bases are expected to continue to perform well, with the Cambodian Phase I capacity ramping up and new projects in Thailand and Cambodia set to commence construction [11][15]. - The company achieved a record high net profit in Q1 2024, with a notable increase in sales volume and a rise in net profit margin due to favorable exchange rate effects [2][11]. Financial Performance Summary - In 2023, the company achieved operating revenue of 5.064 billion CNY, a year-on-year increase of 23%, and a net profit attributable to shareholders of 216 million CNY, a year-on-year increase of 1175% [1][26]. - For Q4 2023, the company reported revenue of 1.385 billion CNY, a year-on-year increase of 64%, and a net profit of 58 million CNY, a year-on-year increase of 1083% [1][26]. - In Q1 2024, the company achieved operating revenue of 1.443 billion CNY, a year-on-year increase of 38%, and a net profit of 153 million CNY, a year-on-year increase of 1271% [1][11]. Financial Forecast - The company is projected to achieve operating revenues of 7.77 billion CNY, 10.99 billion CNY, and 12.115 billion CNY for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 53%, 41%, and 10% [15]. - The net profit attributable to shareholders is expected to be 630 million CNY, 1.022 billion CNY, and 1.222 billion CNY for the same years, with year-on-year growth rates of 191%, 63%, and 20% [15].